New Delhi: Billionaire investor Warren Buffett has once again been on the headlines after donating more than $1.1 billion in Berkshire Hathaway stock to different family charities and foundations on November 25. This action is part of his annual Thanksgiving tradition of giving, which he has been doing for decades. In addition to that, Buffett also revealed what is happening with his succession plan for his massive fortune, pegged at $147.4 billion.
Earlier, Buffett had stated that all this wealth would be split up among his three children about ten years after his death. Still, he recently disclosed that there is an unknown successor lined up to administer the trust if any of his kids dies before getting their share in entirety. Though the identity of this successor is not public, Buffett assured the investors that his children know who he was talking about and that his children think they would have been good choices.
Buffett revealed in a candid letter to shareholders how life was full of uncertainty and his children’s life expectancy had become limited as they were now aged 71, 69, and 66. However, he made it very clear that he doesn’t want to create dynastic wealth, yet he admitted that he had provided his children with financial aid over the years. He conceptualized a philosophy on inheritance, which was that the rich should leave enough to their children to pursue their dreams but not so much that it brings about complacency.
Much of his immense wealth is due to the power of compounding interest and the successful growth of Berkshire Hathaway through strategic investments, among them significant stakes in Apple Inc. He continues living modestly in Omaha, Nebraska, where he has stayed for decades, and drives practical vehicles rather than indulging in luxury.
Since the death of his first wife, Susan Buffett, in 2004, the family has given away about $3 billion from their estate. In 2006, Buffett committed to making annual gifts to foundations overseen by his children and to the Bill & Melinda Gates Foundation. To date, he has given the Gates Foundation about $55 billion in stock.
Buffett’s tradition of gifting shares is not limited to Thanksgiving. He usually gives quite a lot each summer. He also advocates for more openness about wills and estate planning, encouraging parents to tell their families what they are doing while they are alive. This way, disputes or arguments that may occur upon the death of a loved one will be avoided.
